In order to actively respond to China’s “deep-sea technology” strategic deployment and accelerate the localization process of high-end deep-sea equipment, Shanghai Shenkai Petrochemical Equipment Co., Ltd. (stock code: 002278, hereinafter referred to as “Shenkai”) recently announced the completion of its strategic investment in Shandong Future Robot Co., Ltd. (hereinafter referred to as “Shandong Future Robot”), a leading domestic deep-sea robot enterprise. This move is deeply in line with Shenkai’s marine strategic layout. Based on its profound accumulation in the field of marine petroleum equipment and the cutting-edge capabilities of Shandong Future Robot in deep-sea operations, the two parties will work together to create an integrated solution of “marine equipment+deep-sea engineering”, jointly promote the localization process of core marine equipment, and accelerate the development and utilization of marine petroleum and gas resources.

As a leading enterprise in the field of deep-sea robot in China, Shandong Future Robot has the core capability of full-chain independent localization, and is an internationally renowned manufacturer and service provider of working-level deep-sea engineering equipment. Its outstanding technical strength will inject strong momentum into Shenkai’s R&D of underwater petroleum equipment and engineering services:

· Experience in the localization of core equipment

The flagship product of Shandong Future Robot — a 3,500m deep-sea operation robot, which is equipped with a 100% domestic TMS (underwater docking system), has set a record for 72h continuous deep-sea operation in the 2,000m sea area of the South China Sea. This achievement marks the realization of complete autonomy and controllability in key core technologies including deepwater power transmission, high-pressure sealing, high-precision navigation and positioning, reliable communication transmission, etc., breaking the long-term technological monopoly of European and American countries at one stroke. This valuable experience of successful localization can be directly transferred to accelerate the localization process of deep-sea oil and gas development equipment.

· Advanced Deep-sea Intelligent Operation Technology

The latest 1,500m deep-sea cable laying robot developed by Shandong Future Robot has successfully filled the domestic gap. This equipment is the first intelligent operation platform with high water depth and strong anti-current capabilities in China. It has excellent performance including underwater walking, suspended maneuvering, precise navigation and positioning, etc., especially making technical breakthrough in resistance to disturbance of level 8 ocean currents, with a positioning accuracy of up to ± 0.1m.These advanced intelligent control and precise operation capabilities (such as high-precision navigation and positioning, stable control in complex ocean current environment), are the core technologies urgently needed for complex tasks including equipment installation, inspection and maintenance, sub-sea pipeline laying and maintenance of ROVs (remotely operated vehicles), AUVs (autonomous underwater vehicles), etc. in deep-sea oil and gas exploration and development. 

· Profound Technical Expertise and R&D System

Shenkai has established a R&D team with nearly 200 high-level talents led by Leng Jianxing (one of the developers of the “Jiaolong” manned submersible), Professor Sun Lining (the leading talent of the national “Ten Thousand Talents Plan”, Changjiang Scholars of the Ministry of Education, and Mount Taishan leading talent) (master’s degree or above accounting for more than 30%). The team has more than 200 independent core technologies in core common key technologies including deep-sea transportation, detection and perception, intelligent operation control, etc., and has applied for a total of 92 patents (35 invention patents). Its mature technology R&D platform, complete testing and verification capabilities, and strict quality assurance system have laid a solid foundation for the two parties to jointly develop highly reliable deep-sea oil and gas intelligent equipment.  

Capital Favors: National Team and Industrial Capital to Jointly Draw a Deep-sea Blueprint

With leading technological strength and broad market prospects, Shandong Future Robot has been strongly endorsed by the capital market. In this round of investment, China Petroleum Kunlun Capital Co., Ltd. (hereinafter referred to as “Kunlun Capital”), as the strategic leading investor, has completed capital injection, and listed company Shenkai, as an important industry investor, has also participated in this round of investment and completed the signing of contract.As a professional investment platform under China National Petroleum Corporation, Kunlun Capital’s strategic capital injection has fully demonstrated the high recognition and firm confidence of state-owned capital in the strategic value and development potential of deep-sea intelligent equipment.

A Collaborative Future: Building an Intelligent Deep-sea Oil and Gas Equipment System

Shenkai has achieved remarkable results in the field of marine equipment, and its independently-developed intelligent wellhead equipment has been widely applied in China’s largest offshore intelligent oilfield cluster “Enping 15 Oilfield Cluster” and Asia’s first deepwater jacket platform “Haiji-1”. In addition, Shenkai has undertaken a series of major projects aimed at overcoming the bottleneck technology, including the scientific and technological research project “Subsea Tree Based on Injection and Production” and the strategic emerging industry project “1,500m Deep Horizontal Subsea Tree” of Shanghai Municipal Commission of Science and Technology, etc., all of which have completed the trial production of domestically-produced prototypes and sea trial verification of key components. 

Shenkai’s strategic investment in Shandong Future Robot is a key milestone in its maritime strategic layout, which precisely focuses on the deepwater intelligent operation equipment field that China urgently needs to make breakthroughs. By deeply integrating Shenkai’s profound accumulation in marine oil and gas equipment with Shandong Future Robot’s deep-sea operation capabilities in marine intelligent robots, the two parties will work together to accelerate the localization process of deep-sea core equipment and promote the efficient development and utilization of marine oil and gas resources. This will not only enhance the core competitiveness of Shenkai in high-end marine equipment and technology, create significant economic and strategic value, but also practice the strategy of building a strong maritime country with practical actions, and will contribute solid “Shenkai power” to ensuring national energy security and promoting high-quality development of the marine economy.